Indonesian Political, Business & Finance News

Business Community Needs Stability and Certainty, Kadin Rejects Proposal for Withholding Tax Refunds

| | Source: REPUBLIKA Translated from Indonesian | Business
Business Community Needs Stability and Certainty, Kadin Rejects Proposal for Withholding Tax Refunds
Image: REPUBLIKA

REPUBLIKA.CO.ID, JAKARTA – In an uncertain economic climate where business actors must ensure business continuity to retain employees, create new jobs, and drive economic growth, government policies need to provide stability and certainty for doing business.

Amid global economic pressures triggered by tariff wars and geopolitical conflicts, maintaining existing workers is no easy task, let alone opening new job opportunities.

“Business actors affiliated with Kadin Indonesia fully support all presidential programmes, including job creation. All of this can proceed if there is stability and certainty for doing business,” said Vice Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for the Industrial Sector, Saleh Husin, in a statement on Thursday (9/4/2026).

This statement is Kadin’s response to remarks by Chairman of Commission XI of the DPR, Mukhamad Misbakhun, during a dialogue on a national TV station on Wednesday (8/4/2026).

Kadin assesses that in the still turbulent global situation, the business world is currently struggling to survive, even just to maintain business continuity. Therefore, business actors actually need policy certainty, not additional uncertainty that could disrupt the investment climate.

“The business world should be given stability and certainty for doing business, not faced with policies that could potentially complicate the business climate, especially in the manufacturing sector that employs millions of workers,” Saleh stated.

Kadin emphasised that tax restitution is the right of the business world for excess tax payments deposited with the state. Delays or halts in restitution are seen as potentially creating new controversies and triggering investor doubts about legal and policy certainty in Indonesia.

“Do not let policies emerge that instead create uncertainty and impact investment interest,” stressed the former Minister of Industry.

Furthermore, Saleh reminded that the current economic conditions are not normal. Therefore, all stakeholders, including the government, legislature, judiciary, business world, and academics, need to synergise in facing global pressures that directly impact the domestic economy.

Previously, Misbakhun stated that delaying restitution could increase state revenue by up to Rp 500 trillion and serve as a fiscal buffer amid the global surge in energy prices.

According to Saleh, the business world views policy stability and certainty for doing business as the main factors in maintaining investor confidence and national economic sustainability. “Do not let entrepreneurs adopt a wait-and-see attitude for opening new businesses,” he concluded.

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